Home Trading Strategies I got this Forex Trade WRONG, here’s what you can learn…

I got this Forex Trade WRONG, here’s what you can learn…

62
0
I got this Forex Trade WRONG, here’s what you can learn…

hey hey what’s up my friend so in this video I want to share with you a trade right then I got it wrong big time from the start so this is a trick right on pound Ozzy the daily timeframe and I just want to share with you my top process to why I took this trick so you can see that the price pretty much came into this area of resistance over here over here price came in to this level and got rejected right you saw this a bearish reversal pattern and a nice fat round number of 1.

8 and this obvious market structure resistance so when this occurred right I took myself I want to get shot because you know I’m against this obvious market structure so I’m going down to a lower timeframe the 4 hour time frame to look for a entry trigger so I went down to the 4 hour time frame okay and for those of you who have you know followed me right you know that I like to look for a weak pullback on the lower timeframe telling me that you know the the bias are unable to push price higher so this was the market structure I was looking at right a strong move higher and then you had this strong reversal and then this week pullback showing you that the buyers are unable to push price higher and then on this candle over here the price this rate can over here the price break and close below the low so I went shot half my stop-loss right 180 are above this high so 180 are somewhere about here ok and I ran shot and as you can see right at this point in time boom I just got stopped out the market just really against me and I took the loss on this trade now at this point right I want to see that you know I don’t regret picking this trade right I guess I am wrong on this trade the market has proved me wrong big time but I have my stops right in place to kind of you know contain the losses but what happens is that what if you don’t you hesitate to take the loss what if you are thinking let’s say for example at this point in time the price is now impacted resistance and many of you right many traders will look at this and say to themselves hey the prices at resistance why do I want to cut my lost now maybe the price could reverse from here and and I don’t have to take a loss okay and what happened is that if you hesitate to take a loss if you don’t follow the plan that you set up for yourself what could happen is that loss snowball into a bigger loss for example boom market broke out of the range and now the original loss that you had as you know grown into something bigger let’s say you were initially risking $200 on the trip now it’s no ball to like $500 okay anyway I think yourself again you know have the hopes that you know you know what I will wait for the retracement to come and exit at a smaller loss so maybe instead of having an open loss of $500 now you wait for the retracement to come like something like this a retracement okay and see if the loss gets smaller before you exceed the trip but trust me if you do something like this right again your hope will get in the way and the only time your exit that rate is where you cannot stand the pain any longer in this case boom breaks out again right your $500 loss is now snowball into $1700 loss okay so the point I’m trying to make over here is that when you have a stop loss all right when the market has proved you wrong like it did to me it proved me wrong and here your stop-loss respect it and get out of the tree okay this is important so let me share with you another trait that I took right and market prove me wrong again right dollar against the Norwegian krone Oh so let me share with you the top process of this tree so this one over here if you look back out right this market actually came into this let me just adjust this slightly on this level here okay i zoom out alright so we can see that this market right you look left right came into this obvious structure this previous resistance that could act as support right over here okay so again right at this point in time where I got long is it is juncture right somewhere about here I noticed that hey you know support seems to be holding up pretty well right so on the loop for a long set up so I went down to the sorry let me look at the day the daily time frame analysis first this way I don’t explain my top process now this is what I was referring to okay market test the previous resistance now a key support on this daily time frame and I noticed that no prices and this attractive level and I want to get long so I went down to the four hour time frame similar to the pound Aussie trade I went down to the lower timeframe and look for a break off structure so over here I noticed one thing this market right seems to be forming a bottom pattern right you have a lower low lower low and at this point in time right you now have a higher low okay higher low not a higher low right high a low high low and now he also have a higher high so I look at this and I was thinking to myself hey you know the daily timeframe it’s in an uptrend is that a favorable trait location and this area of previous resistance turn support and now in this timeframe I have a series of higher highs and higher lows telling me that you know the bias seems to have regain control and I want to be long in this market so I went long okay in fact I wait I place a buy limit order at this level because when the market closed up higher I was being a cheapskate I didn’t want to buy it at price so I place a buy limit order and in this case I got filled right on the retracement alright my stop-loss 180 are below this low somewhere about here and in this case again I’m just trilling my stop-loss right on the daily timeframe so I wanted to write the daily swings right so if you look at this over here the daily swings right which is this one over here I I went along somewhere here and wanted to write this daily swing so I’m drilling my stop-loss right on the previous day low so if the market breaks and closed below the previous day low I’ll exit the tree so what happened is that this candle came right and it pretty much break and closed below the previous day low and I had a loss on this trade as well ok so you can see that pretty much my open profits got vaporized and even suffered a small loss because of it right I had a loss of point four point one four are on this tree okay so another loss market proved me wrong didn’t want to swing higher swing a little bit and then reverse back pump alright hit my trailing stop loss and I got stopped out of this as well again the lesson learned is that you know when you have a plan you have a stop loss right adhere to eat right and just take what the market gives you so let me share with you an another example of a trait that I took about taking what the market offers you so this is a trait of silver the right let me silver okay let me share with you my top process again so this time around I’m using the 20 mes the so-called resistance dynamic resistance right because when I look at this trend market is in a in a Down Crane okay and what happens is that as I’ve mentioned right when a market is in a strong downtrend seldom right will you get it to reno retest previous support and resistance seldom would it come back to read has no previous resistance level right so you need to have a different tool to kind of help you define your dynamic support resistance and in in this case in a strong trend the 20 ma right is useful to define this type of a dynamic resistance levels so in this case I saw on the daily price bounds of the 20 ma got rejected again this is an area of value on a trade from I’m trading with the trend and now I’m just looking for an entry trigger to go shop in this case I went down to the forward timeframe as well okay and I saw this right same same old pattern lower high lower low because I’m looking to short all right I wanna see a series of lower highs and lower lows before or rather to tell to let the market tell me that it’s about to reverse lower so in this case price broke down for my weight pull back right now if a lower high and the lower look price break below this swing low I went shot stop-loss again 180 are above this highs and in this case right again I’m just going to write a swing on on a daily timeframe drilling my stops on this daily timeframe and take what the market offers me same thought process so in this case on a daily timeframe you can see there I got a shot here right somewhere here right and I just drill my stop-loss right as the market went lower so if the market breaks and closed above the previous day high I’ll exit the trade so as you can see over here that pretty much allowed me to write this downward swing right and I existed here boom right can see break and closed above the previous day hi so in other words I did capture this one swing over here and I’m just taking what the market offers I’m not trying to force anything out of the market right if he gives I take it doesn’t give exit simple as it is okay and at this point in time the market now is now possibly showing signs of reversal I could have made more that’s right if I did not you know follow my rules I could have made more but at the same time the market could have reverse and I could have lost more so you can see that trading is all about balancing your risk to reward you never know how much the market will move in your favor you never know how much the market will move against you all you can do is to have a set of rules to play good defense and to take what the market offers you so the three trades that I shared with you earlier the first two are losing trades II hit my stop-loss I’m just protecting myself protecting my downside and it’s that trade right when the market decides to if I take what it offers okay so this is the lesson right in today’s video right I am wrong I am wrong but you don’t have to be right on every trip to make money in the long run all you need to do is to protect your downside and then take what the market offers you okay so with that said right let’s move on and talk about a couple of your new trading setups that I’m looking at this way again same principles that that I’ve shared you know in my weekly maybe my weekly or rather the market analysis that you are seeing now for months and years okay the next pair let’s have a look is a platinum I think it so it’s worth looking letting them where are you my dear here okay so platinum right very similar to silver market is in a downtrend if you pull out your twenty ma I think this learn more aspects the 50 mm yep somewhere around the 50 ma okay price came into this previous support turn resistance again now you have a what we call a false break price breaking arm of this heist and then reversing lower you can go shot over here and have your stop loss right 180 are above this size which is slightly beyond the 50 ma as well alternatively right if you want to be a little bit of a cheapo a cheapskate and get a better entry timing you can look at the four hour time frame and see where is a logical place where selling pressure might exist right and if you ask me I would say this level over here you know previous swing load I could I can support this is where there might be selling pressure looking around so you can place a sell them in order again and have your stop-loss one eighty are above here so you can see that if you place a sell them in order around here you’re getting a slightly better entry okay and how would I manage this trade same thing right I’m just gonna take what the market wants to offer so in this case I’m going to drill my stop-loss right if the market breaks and close above the previous day high right I will just exit the trade right because it’s telling me that you the buyers are coming in there is sign of strength right I will be a lot of the trade alternatively right for those of you who wants to write the longer-term trend you can drill your stop-loss right on this 50 period moving average notice if when you look back right the market has not break and closed above the 50 ma for quite some time so this is a level that you can reference to to set your trailing stop loss that is perfectly sound as well so I kind of leave it to you depending on your trading goals how you wanna you know manage this trip right this is platinum another trick that I want to share with you is the pound against the Swiss franc this one over here you can see that this market is a in a downtrend okay in fact there is this – structure over here that I didn’t draw it but you can see it over here right that’s that one’s here okay and then here seconds a minute time over here but what’s interesting is that if you look at the four hour time frame right there is a chop pattern that is showing you signs of weakness in the market this is a chap pattern is what we call the descending triangle alright notice that there is lower highs coming into this area of support this tells you that the buyers try to push price higher but you know keep getting smashed down lower by the sellers at lower and lower prices so now the buyers are kind of constrained yup you know push into a corner and if you ask me right there’s a good chance there’s a good chance that this market could break down lower so what I’m looking for is for breaking close below this area of support if it does again I’ll go shot have my stops 1et are above this size somewhere here right and try to write the downward swing right and see and to take what the market offers if it’s not gonna offer anything I just be a lot and say sayonara thank you and I’m I’m out see ya right so that’s what I’m doing on this a pound Swiss franc trade st the setup that I’m looking at okay so these aren’t a couple of trading opportunities that I feel that it’s worth watching for this coming week and hopefully the first three traits that I share with you are good lessons to kind of ground you into what you should expect from trading so with that said right I have come towards the end of this this week’s our market analysis if you’ve enjoyed it right please all right hit the subscribe button below just click on it click right hit the like button if you need feedback comments questions leave it in the comment section below and I’ll get back to you alright so that’s it I wish you good luck and good trading until next time you

LEAVE A REPLY

Please enter your comment!
Please enter your name here